The Internet of Things (IoT) has revolutionized the modern world, interconnecting devices and systems, thus streamlining operations in unprecedented ways. As industries rapidly adopt smart technologies, the demand for a robust, efficient, and secure network to support this vast web of devices has become paramount. Now, Helium entered the market in 2013 as an innovative convergence of blockchain technology and IoT, aiming to address the prevalent challenges and reshape the way devices communicate and share data.


Founded in the wake of Bitcoin’s introduction, Helium emerged in 2013 with the ambition to pioneer the first universal peer-to-peer wireless network. This revolutionary concept was designed to connect a diverse range of devices, paving the way for a globally accessible Internet of Things (IoT). Helium’s creation can be attributed to the visionary trio of Amir Haleem, Sean Carey, and Shawn Fanning. Their idea garnered substantial attention, managing to amass over $53 million through four distinct funding endeavors between 2015 and 2019. With its official network launch in 2019, Helium set forth with a mission to address prevailing challenges in the IoT sphere, particularly concerning user privacy.

What is Helium? 

Helium represents a groundbreaking blockchain-driven network tailored for the Internet of Things (IoT) devices. At its core, Helium’s advanced technology fosters seamless communication between these devices, facilitating data transmission across network nodes. Within the Helium ecosystem, these nodes are termed “Hotspots.” These Hotspots, pivotal for ensuring expansive public network coverage, operate using the LoRaWAN protocol—a media access control layer protocol boasting a cloud component that can integrate with platforms, including Helium.

Having expanded to feature over 25,000 Hotspots, Helium stands out as one of the predominant LoRaWAN networks globally. These Hotspots, intriguingly, merge the capabilities of LoRaWAN with a blockchain-centric mining device. Proudly termed “The People’s Network,” Helium is committed to crafting an adept and forward-thinking IoT framework, geared towards rectifying prevailing inadequacies and offering optimized solutions.

How Does Helium Function?

Helium aspires to sculpt a steadfast, decentralized, and universal network catering to IoT devices. Its core strength stems from the vast community of HNT holders. The framework of this network is designed around nodes or, more precisely, Hotspots. These Hotspots are orchestrated by HNT holders who also double as node operators. Their involvement is not merely passive; by housing and overseeing these nodes, they actively partake in the network’s operational flow and are duly rewarded for their contributions.

While WiFi offers connectivity for IoT gadgets, the endeavor to accommodate a diverse array of devices has the potential to tread on the territory of privacy issues. Helium elegantly navigates this challenge by employing a decentralized structure coupled with a sophisticated consensus protocol. The outcome? A staggering enhancement in the network’s coverage, overshadowing conventional WiFi connections by 200 times when interfacing with the IoT.

Proof-of-Coverage (Ledger)

Helium’s distinction in the blockchain arena stems largely from its innovative consensus protocol. At its heart, the network employs the Proof of Coverage (PoC) algorithm, an ingenious system that incentivizes users to validate coverage. This validation is paramount for establishing both location and network connectivity.

In the Helium ecosystem, Hotspot operators are compensated for their contributions with Helium mining rewards, denominated in the network’s native cryptocurrency, HNT. Periodically, Hotspots undergo random assessments to ascertain their coverage contributions. Successfully demonstrating genuine coverage translates to additional HNT rewards for the Hotspot. The magnitude of these rewards correlates directly with the Hotspot’s contribution to the overarching network.

This reward mechanism not only incentivizes the operation of Hotspots, thereby powering the entire network, but it also revolutionizes the mining landscape. Eschewing the energy-hungry GPUs and ASICs synonymous with traditional Bitcoin mining, Helium leans into the vastly more efficient radio wave technology, presenting a more sustainable mining alternative

Helium Crypto Miner

The Helium network is supported and expanded by unique hardware components known as hotspots, which function as Helium miners. By securing a WHIP-compliant hotspot and staking a token deposit that correlates to the number of miners in their vicinity, users step into the role of miners on the Helium ecosystem.

Helium incorporates the pioneering Wireless protocol, WHIP. Unlike conventional models that rely on a single coordinating entity, WHIP operates through a decentralized network of independent providers. This protocol ensures a two-way data transmission between wireless gadgets and the world wide web. An intriguing aspect of this setup involves routers. These are internet applications tasked with purchasing encrypted data from miners. Their role is vital in validating that data from devices is directed to the right destination, thereby ensuring miners are aptly compensated.

Diving deeper into the types of hotspots, we identify three main categories:

  1. Full Hotspots: These are the powerhouses of the network. Apart from preserving a comprehensive copy of the HNT blockchain, they are incentivized for their holistic contribution, inclusive of their role in proof-of-coverage.
  2. Light Hotspots: Operating on the Light Hotspot software, these hotspots collaborate with validators to function akin to full hotspots, minus the overhead of locally hosting the blockchain. They enjoy rewards for both proof-of-coverage and data transfer tasks.
  3. Data-only Hotspots: These are streamlined versions that, similar to light hotspots, liaise with validators for blockchain insights. However, their rewards are confined solely to data transfer activities.


Helium transcends the commonplace perception of a mere digital currency driven by market speculations. It embodies an intricate network that seamlessly links IoT devices, subsequently yielding rewards in the guise of HNT coins. These coins hold intrinsic value and can seamlessly traverse various blockchain ecosystems.

Diving deeper into Helium’s functionality, this innovative network establishes connections among a myriad of smart gadgets present in residential spaces, corporate environments, and other commercial setups. This widespread application makes it a sought-after choice for both businesses and individual users. The testament to its growing ubiquity is the astounding number of Helium hotspots in operation across the globe, crossing the half a million mark. These hotspots serve as the linchpins, facilitating smooth data transfer between compatible devices.


The merger of blockchain and IoT, as epitomized by Helium, paves the way for a future where data exchange is not only efficient but also decentralized and secure. Helium’s approach offers a glimpse into the immense potential of intertwining these two transformative technologies. However, while Helium makes significant strides in this realm, there are other pioneering blockchain initiatives, such as IOTA and IoTeX, that are also venturing into this fusion. Each of these projects holds promise, underscoring the exciting prospects that lie ahead as blockchain and IoT continue their collaborative dance towards a more connected, transparent, and efficient future.